Current share price of $1.07 gives us a market cap of $400m
Sentenial selling for $54m brings EML into net cash position of $30m+
Current underlying operating cashflow of $40m+ ex PCSIL
Current underlying Free cash flow of $30m+ ex PCSIL
Current annual interest revenue excl PCSIL of approx $45m
FY25 ebitda estimates of $62m+ as per forecast from Edison Group assuming nominal customer growth of under 10%
Based on current share price this provides us with an estimated future enterprise value of under $340m at FY25 or an EV/EBITDA multiple of approx. 5.5 Recently, Nuvei received an offer circa 14x EV/Ebitda.
Further potentials
FCA to lift growth cap on PFS UK
$10-15m reduction in overheads by H2 2024
Net FTE reduction of 10% by FY25 (current employee costs annualising at $90m+ but that's including PCSIL)
Optimisation activities to improve Interest yield on float - currently @2.54%
EML Price at posting:
$1.08 Sentiment: Buy Disclosure: Held
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